What are Agreed Upon Procedures | Virtual

1
What are Agreed Upon Procedures?
It must be noted that agreed upon procedures are
those that empower an auditor to engage in audit
procedures that all parties concerned (client
entities as well as third party dealers) agree
beforehand!
These procedures are called as audit standards,
and are agreed upon by all parties. Agreed upon
Procedures (AUP) are usually developed by one
entity that is considering purchasing another
business. The purchasing entity generally
develops procedures to ensure that the business
it acquires may be developed in a monetary way or
any other way. The buying entity can engage an
audit to determine specific aspects of the
business it is buying. These may include but are
not limited to vendor contracts, loan portfolios,
and many other things thereof. Agreed upon
procedures are important because they can
instruct the auditors on what information they
are seeking, to get the facts, so that they
can draw their own conclusions. The agreed
aspect can be any business information. This
aspect is usually never all of the business
financials. It is the job of the auditor not to
engage in any conclusion, but to just state the
raw facts as they are!
2

• Benefits
• This is beneficial for companies that have
  concern about one financial aspect while all the
  other financial aspects are okay. This means that
  an entire audit is not necessary but rather an
  attention to just one part or aspect of the
  audit.
• A variety of records can be selected to be
  studied and also to narrow down the field
  considerably. Therefore, you can focus on a
  particular area of interest.
• Because agreed upon procedures are not an
  official audit, the company has the say about
  the extent to which it is performed. This results
  in less costs in the long run.
• Better accounting practices are a result of the
  neutral facts stated from an AUP. Hence
  specialized reports are created.
• AUPs are flexible, and different firms use them
  for different purposes. As an organization, the
  client is in the drivers seat to perform all of
  the AUPS. This results in seeing the exact
  results and set thresholds for various
  parameters and variables.
• It should be stated clearly that an agreed upon
  procedure can be easily bundled along with an
  audit, whenever the situation demands it. It is
  very convenient to do so.

3
Thank you for using www.freepdfconvert.com service
!
Only two pages are converted. Please Sign Up to
convert all pages. https//www.freepdfconvert.com
/membership